While most markets extended their gains in July and Wall Street reached new all-time highs, the moves were more muted than in the first half of the year, with some markets falling, notably in Asia, taking the Emerging Markets index down 1.2%. Gains that were made were modest, with the UK the biggest gainer in local currency terms, up 2.1%, but this was driven largely by a sharp fall in sterling which benefits the big listed offshore earners which dominate the UK stock market. Government bonds were generally firm as yields drifted lower while credit markets performed well with investment-grade corporate and high yield bonds each returning 0.6% and emerging market debt 0.8% in the month, taking a year to date returns for all 3 sectors into double digits.
Imperium Capital Publication
Weekly Digest – 19 August 2019
- The US 2s10s yield curve inverted for the first time in 12 years
- Germany reported a contraction of 0.1% in their economy
- Brent crude returned 0.2%, ending the week at $58.6 per barrel
- Gold rose 0.9% ending the week at $1513.0 an ounce
Weekly Digest – 12 August 2019
- UK economy contracts for the first time since 2012
- Turbulent week for EU bond yields
- Brent crude fell 5.4%, ending the week at $58.5 per barrel
- Gold price rose 3.7% ending the week at $1500.1 an ounce
Weekly Digest – 05 August 2019
- US Federal Reserve cut its rate by 25 basis points
- Donald Trump announced a 10% tariff on $300bn of Chinese goods
- Brent crude fell 4.7%, ending the week at $60.5 per barrel
- Gold prices were flat ending the week at $1419.1 an ounce